Vishay Intertechnology : Q1 2025 Results Earnings ReleaseHTML

Published: 2025-05-07 07:21:11 ET VSH

Published on 05/07/2025 at 07:21

May 7, 2025

MALVERN, Pa., May 07, 2025 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal first quarter ended March 29, 2025.

"Market signals, which continued from the fourth quarter, indicate that much of the channel inventory that overhung the market has normalized. We executed well during the first quarter on our strategic levers to drive faster revenue growth and improve profitability. We are prepared to navigate evolving tariff policies and any demand uncertainties, staying in close contact with our customers to assure them of reliable supply and making adjustments to our spending as necessary," said Joel Smejkal, president and CEO. "The investments we have made in capacity over the past two years better position Vishay for a market upturn and support our decision to guide for a sequential revenue increase of 6%."

For the second quarter of 2025, management expects revenues in the range of $760 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport. Second quarter guidance includes the anticipated effect of tariffs.

A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at https://http://ir.vishay.com.

There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.

Vishay manufactures one of the world's largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at https://www.Vishay.com.

This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted gross margin; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted gross margin, adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.

Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capital investment, capacity expansion, stockholder returns, tariff effects, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as "guide," "will," "expect," "indicate," "anticipate,"

"committed" or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand; delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The DNA of tech® is a trademark of Vishay Intertechnology.

Contact:

Vishay Intertechnology, Inc. Peter Henrici

Executive Vice President, Corporate Development

+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC.

Summary of Operations

(Unaudited - In thousands, except per share amounts)

Fiscal quarters ended

March 29,

2025

December 31,

2024

March 30,

2024

Net revenues

$ 715,236

$ 714,716

$ 746,279

Costs of products sold

579,682

572,584

575,872

Gross profit

135,554

142,132

170,407

Gross margin

19.0%

19.9%

22.8%

Selling, general, and administrative expenses

134,739

132,330

127,736

Impairment of goodwill

66,487

Operating income (loss)

815

(56,685)

42,671

Operating margin

0.1%

-7.9%

5.7%

Other income (expense):

Interest expense

(8,790)

(7,731)

(6,496)

Other

3,747

5,563

8,087

Total other income (expense) - net

(5,043)

(2,168)

1,591

Income (loss) before taxes

(4,228)

(58,853)

44,262

Income tax expense (benefit)

(136)

7,232

12,819

Net earnings (loss)

(4,092)

(66,085)

31,443

Less: net earnings attributable to noncontrolling interests

223

519

Net earnings (loss) attributable to Vishay stockholders

$ (4,092)

$ (66,308)

$ 30,924

Basic earnings (loss) per share attributable to Vishay stockholders

$ (0.03)

$ (0.49)

$ 0.22

Diluted earnings (loss) per share attributable to Vishay stockholders

$ (0.03)

$ (0.49)

$ 0.22

Weighted average shares outstanding - basic

135,799

136,050

137,726

Weighted average shares outstanding - diluted

135,799

136,050

138,476

Cash dividends per share

$ 0.10

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets (Unaudited - In thousands)

March 29,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$ 609,402

$ 590,286

Short-term investments

10,197

16,130

Accounts receivable, net Inventories:

Finished goods

427,634

177,202

401,901

175,176

Work in process

314,752

296,393

Raw materials

220,484

217,812

Total inventories

712,438

689,381

Prepaid expenses and other current assets

215,891

217,809

Total current assets

1,975,562

1,915,507

Property and equipment, at cost: Land

84,827

84,124

Buildings and improvements

784,132

766,058

Machinery and equipment

3,336,823

3,259,213

Construction in progress

377,095

367,564

Allowance for depreciation

(3,008,308)

(2,931,221)

1,574,569

1,545,738

Right of use assets

117,445

117,953

Deferred income taxes

162,126

159,769

Goodwill

179,388

179,005

Other intangible assets, net

85,962

87,223

Other assets

105,190

105,501

Total assets

$ 4,200,242

$ 4,110,696

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Balance Sheets (continued)

(Unaudited - In thousands)

March 29,

2025

December 31,

2024

Liabilities and equity

Current liabilities:

Trade accounts payable

$ 211,378

$ 216,313

Payroll and related expenses

153,201

137,101

Lease liabilities

26,179

25,901

Other accrued expenses

262,649

264,471

Income taxes

51,994

64,562

Total current liabilities

705,401

708,348

Long-term debt less current portion

988,235

905,019

Deferred income taxes

99,777

96,363

Long-term lease liabilities

93,150

94,218

Other liabilities

103,968

104,086

Accrued pension and other postretirement costs

177,579

173,700

Total liabilities

2,168,110

2,081,734

Equity:

Common stock

13,411

13,361

Class B convertible common stock

1,210

Capital in excess of par value

1,308,366

1,306,245

Retained earnings

937,833

955,500

Treasury stock (at cost)

(224,600)

(212,062)

Accumulated other comprehensive income (loss)

(4,088)

(35,292)

Total equity

2,032,132

2,028,962

Total liabilities and equity

$ 4,200,242

$ 4,110,696

VISHAY INTERTECHNOLOGY, INC.

Consolidated Condensed Statements of Cash Flows (Unaudited - In thousands)

Three fiscal months ended

March 29,

2025

March 30,

2024

Operating activities Net earnings (loss)

$ (4,092)

$ 31,443

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation and amortization

53,773

49,527

(Gain)/loss on disposal of property and equipment

189

(625)

Inventory write-offs for obsolescence

9,030

8,179

Stock compensation expense

6,051

5,344

Deferred income taxes

1,573

4,376

Other

(1,380)

426

Changes in operating assets and liabilities, net of effects of business acquired

(49,046)

(18,459)

Net cash provided by operating activities

16,098

80,211

Investing activities Capital expenditures

(61,569)

(53,084)

Proceeds from sale of property and equipment

279

751

Purchase of businesses, net of cash acquired

(168,616)

Purchase of short-term investments

(21,899)

(19,232)

Maturity of short-term investments

27,832

17,611

Other investing activities

(661)

(1,219)

Net cash used in investing activities

(56,018)

(223,789)

Financing activities

Net proceeds on revolving credit facility

82,000

Dividends paid to common stockholders

(12,352)

(12,542)

Dividends paid to Class B common stockholders

(1,210)

Repurchase of common stock held in treasury

(12,538)

Cash withholding taxes paid when shares withheld for vested equity awards

(3,893)

(4,053)

Net cash provided by (used in) financing activities

52,007

(30,343)

Effect of exchange rate changes on cash and cash equivalents

7,029

(2,257)

Net increase (decrease) in cash and cash equivalents

19,116

(176,178)

Cash and cash equivalents at beginning of period

590,286

972,719

Cash and cash equivalents at end of period

$ 609,402

$ 796,541

VISHAY INTERTECHNOLOGY, INC.

Reconciliation of Adjusted Earnings Per Share (Unaudited - In thousands, except per share amounts)

Fiscal quarters ended

March 29,

2025

December 31,

2024

March 30,

2024

GAAP net earnings (loss) attributable to Vishay stockholders

$ (4,092)

$ (66,308)

$ 30,924

Reconciling items affecting operating income: Impairment of goodwill

$ -

$ 66,487

$ -

Adjusted net earnings (loss)

$ (4,092)

$ 179

$ 30,924

Adjusted weighted average diluted shares outstanding

135,799

136,883

138,476

Adjusted earnings (loss) per diluted share

$ (0.03)

$ 0.00

$ 0.22

VISHAY INTERTECHNOLOGY, INC.

Reconciliation of Free Cash (Unaudited - In thousands)

Fiscal quarters ended

March 29,

December 31,

March 30,

2025

2024

Net cash provided by operating activities

$ 16,098

$ 67,656

$ 80,211

Proceeds from sale of property and equipment

279

1,618

751

Less: Capital expenditures

(61,569)

(144,904)

(53,084)

Free cash

$ (45,192)

$ (75,630)

$ 27,878

VISHAY INTERTECHNOLOGY, INC.

Reconciliation of EBITDA and Adjusted EBITDA (Unaudited - In thousands)

Fiscal quarters ended

March 29,

2025

December 31,

2024

March 30,

2024

GAAP net earnings (loss) attributable to Vishay stockholders

$ (4,092)

$ (66,308)

$ 30,924

Net earnings attributable to noncontrolling interests

223

519

Net earnings (loss)

$ (4,092)

$ (66,085)

$ 31,443

Interest expense

$ 8,790

$ 7,731

$ 6,496

Interest income

(3,877)

(4,533)

(9,053)

Income taxes

(136)

7,232

12,819

Depreciation and amortization

53,773

55,373

49,527

EBITDA

$ 54,458

$ (282)

$ 91,232

Reconciling items Impairment of goodwill

$ -

$ 66,487

$ -

Adjusted EBITDA

$ 54,458

$ 66,205

$ 91,232

Adjusted EBITDA margin**

7.6%

9.3%

12.2%

** Adjusted EBITDA as a percentage of net revenues

Disclaimer

Vishay Intertechnology Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 11:20 UTC.